Posted by Jake Field on Jul 31, 2015 in Accountants | Comments Off on Types Of Fraud Identified By A Mortgage Fraud Investigation Company In Washington, DC

Mortgage fraud encompasses a wide variety of possibilities to obtain property or financial gains. These actions are performed by lenders, investors, and consumers. Among the most common reasons is fraud to obtain housing or profits. A Mortgage Fraud Investigation Company in Washington DC identifies the type of fraud and how it occurred.

Fraud for Profits

Property flipping isn’t an illegal act. However, a fraudulent appraisal could help an investor to purchase and sell the property quickly. In these cases, a lower appraisal value is achieved, and the investor acquires the full profit during the resell. Fraud is identified when the legitimate appraisal identifies a value that is twice the original purchase price.

Occupancy is another option used to generate profits and benefits. By claiming occupancy, the borrower achieves a more beneficial status. The value of the mortgage is greater, and the interest rates are decreased. In these schemes, investors could use a fake borrower to acquire the mortgage.

This is accomplished through identity theft or by creating a false identity. Typically, this happens when the investor can’t obtain this status or the mortgage due to disqualifications. A Mortgage Fraud Investigation Company in Washington DC dentifies the parties behind this form of fraud. They assist the consumer who had their identity stolen. They also cultivate evidence when the borrower doesn’t exist. You can also browse their website for further information.

Predatory Lending Practices and Fraud

New lending laws require banks to establish affordability before approving a mortgage loan. However, unethical lenders continue to falsify income statements and employment records. These practices are performed to ensure a foreclosure. This allows the lender to capitalize on the consumer’s misfortune and double their profits. During foreclosure, they acquire profits from a quick sale. They also acquire funds through an insurance claim filed for a financial loss.

A Mortgage Fraud Investigation Company in Washington DC identifies circumstances where property purchases are illegal. This includes the use of a straw borrower to obtain investment properties. It also includes the use of occupancy when properties are vacant. The underlying reason for these criminal acts is to generate profits or acquire a higher borrower status fraudulently. To prove mortgage fraud, Contact Jeffrey D. Barsky CPA right now.